Emergency Fund: Amount in recurring deposits can meet up to 3 months of expenses.

Express TIP: Salaried people should maintain at least 3 months of emergency expenses as a measure of last resort to face temporary uncertainties in life.

Life Insurance: Rajeev needs life cover of R 1 crore. A term plan for 25 years will cost him approximately R 15,000 per year. He should take one and discontinue the existing policies. It will result in additional cash flow of R 35,000 per year which can be channelised towards his financial goals.

Health Insurance: Rajeev should take a family floater of at least R 10 lakh which will cost him approximately R 20,000 annually.

Express tip: Despite having employer-provided health insurance benefit, one should have a personal comprehensive family health cover.

Express tip: Disability is a neglected area of financial life. It's important to have disability protection along with life and health insurance as permanent /partial disability can jeopardise your regular future income.

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